Budget set of a consumer is defined as:

The collection of all bundles that the consumer can buy with the given income at the prevailing market price.

The budget set is the collection of all bundles that the consumer can buy with her income at the prevailing market prices. Budget set depends on 2 factors: consumer's money income and price of good 1 and good 2. At the given prices, budget set includes all those consumption bundles which cost less than or equal to his income. P₁x₁ + p₂x₂ ≤ M, where x₁x₂ = quantity of good 1 and good 2, P₁ and P₂ = Price of good 1 and good 2 and M refers to money income of the consumer.